ADMS_Winter_2008_Final_Exam_Q_and_S

ADMS_Winter_2008_Final_Exam_Q_and_S - Last name (surname):...

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Last name (surname): _________________ First name: _____________________ Student number: ________________________ Indicate Section o 2510 M – Monday; 4-7pm; L. Shum VH C o 2510 N - Wednesday; 7 - 10pm; S. Ding CLH C o 2510 P – Monday ; 7 - 10pm; Joe Nemi TEL 0001 o 2510 Q – Internet N. Waweru o 2510 R – Friday ; 11:30 to 2:30 pm Bob Bryant CLH H o 2510 S – Tuesday ; 7-10 pm S. Ding CLH H o 2510 T – Thursday ; 7- 10 pm S. Ding CLH E o Deferred from earlier term Sign-in Number (to be filled when you sign in only): _______________ School of Administrative Studies Atkinson Faculty of Liberal and Professional Studies York University ADMS2510 April 13 th , 2007, 2 to 3:10 pm (Part One) Instructions: - This is a closed book examination and no collaboration is allowed. . - There are a total of 40 marks. - Write your name, student number, and section at the top of the page. - There are five questions. Answer each question on the examination paper, and on the back of a page if necessary. - You must write in pencil or pen. Programmable calculators are not allowed. Cell phones cannot be used as calculators. Dictionaries are not allowed. - You have one hour ten minutes; you must not leave before2:30 pm - Place photo identifications on your desk at the beginning of the examination to facilitate verification. - No questions will be answered by the invigilators during the examination Good luck . Question 1: ________ Question 2: ________ Total: /40 1
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Question 1 (20 marks) Siegel Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introduced several years ago to tap a new segment of the market. Since introduction of the deluxe model, the company’s profits have steadily declined and management have become increasingly concerned about the accuracy of its costing system. Sales of the Deluxe model have been increasing rapidly. Manufacturing overhead is assigned to products on the basis of direct labour hours. The company has estimated that manufacturing overhead will total $900,000 for the current year. It is also estimated that they will produce 5,000 units of the deluxe model and 40,000 units of the regular model. The deluxe model requires two hours of direct labour for each unit and the regular model requires one hour per unit. Materials and labour costs per unit are as follows: Model Deluxe Regular Direct materials $40 $25 Direct labour $14 $ 7 REQUIRED: 1. Determine the total unit cost of each product using the traditional method of applying overhead to products based on direct labour hours. 2. Management is considering using activity-based-costing to apply manufacturing overhead costs to products for external financial reports. Determine the total unit cost for each product, using activity-based-costing. The activity-based costing system would have the following activity cost pools for the current year: 2
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Estimated Estimated Cost Pools Cost Cost Driver Volume Purchasing $ 204,000 Purchase orders issued 600 Processing 182,000 Machine-hours 35,000 Scrap/Rework 379.000 Scrap/rework orders issued 2,000 Shipping 135,000 Number of shipments 900 $ 900,000 The company’s other estimated operating statistics for the two products follow:
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This note was uploaded on 01/30/2011 for the course ADMS 2511 taught by Professor Jiu during the Fall '09 term at York University.

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ADMS_Winter_2008_Final_Exam_Q_and_S - Last name (surname):...

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